Your Optimal Precious Metals Strategy Investing in precious metals can act as a hedge against economic turmoil. Gold has been the universal symbol of wealth for civilizations throughout the ages. Ancient cultures created gold jewelry and early forms of money were crafted from gold. In this presentation Liiivo Leismann shares some important and critical ideas regarding precious metals and their potential as an investment. Find out more: http:/www.inflationproofinvestor.com

1. Precious
Metals
Build &
Protect
Your
Wealth

2. What's happening now is not new
History shows a common pattern
Spain has defaulted
15 times
since the 16th century
Greece has defaulted
5 times
since the 19th century
Portugal has
defaulted
7 times
since the 16th
century
This time is not different

3. " Paper money
eventually goes down
to it's intrinsic value
- zero "
Voltaire in 1729

4. " Betting against gold is the
same as betting on
governments. He who bets
on governments and
government money bets
against 6,000 years of
recorded human history."
Charles de Gaulle
French President 1959 to 1969

5. It’s NOT ONLY
about GOLD ….
… it’s also about
CYCLES

6. Klondike 1880’s
When will
a Gold-Rush happen?
2 times during every
Kondratieff cycle:
- in “summer”
(because of increasing inflation)
- in “winter”
(because of disruption of the financial system)

7. Gold – The Best Performing Asset Class Since 2000
Gold Price % Annual Change

8. Crude Oil Prices (base of 100) measured ….
January 1950 through December 2009
in British pounds
in US dollars
In EURO-s
in goldgrams

10. Our Problem
www.mylifeplan.info

11. Precious metals too expensive already???
Price Increase
In the 70’s
20
times
Actual Cycle
5,7
times
42,5 USD to 850 USD
250 USD to 1425 USD
40
8
times
1,25 USD to 50 USD
times
4,5 USD to 36 USD

12. www.mylifeplan.info

13. FIVE PERCENT
ALLOCATION RULE
5% precious metals in your portfolio recommendation,
where does it come from?

14. FIVE PERCENT
ALLOCATION RULE
YOUR SAMPLE PORTFOLIO (100, 000 EUR)
95 % other assets
5 % gold
95,000 EUR
5,000 EUR
BIG CRISIS SCENARIO
other assets
gold
95,000 EUR * 0 = 0 EUR
5,000 EUR * 20 = 100, 000 EUR
your portfolio still
100, 000 EUR
YOUR PAIN KILLER
against inflation

15. It’s NOT about PRICE ….
… it’s about OUNCES you own

16. Selection ETI Fund
Investing in physical precious metals ETFs
at the Zürcher Kantonalbank and UBS
Metal deposited in Switzerland
Option for physical delivery
Strategic solution as alternative single fund

17. “Paper Gold” vs Real Gold
“Paper Gold” products
(GLD, SLV, and etc)
filled with RISK
Their prospectuses
contain multitude of
“LOOPHOLES”

18. “LOOPHOLES” such as:
• The underlying gold is NEVER required to be audited
• No prohibition against LEASING the fund’s gold and silver
• The fund custodians (HSBC – GLD; JP Morgan - SLV)
can use “sub-custodians” to store gold and silver,
which have NO OBLIGATION to be audited either
• JP Morgan is subject of dozens of lawsuits alleging illegal, naked
short selling of silver futures contracts
Therefore, both funds trade at DISCOUNTS
to the underlying gold and silver prices
(currently at ca 3%)

19. Dynamic fund of fund investing in 3 asset classes:
- physical gold
- gold & silver mining stock
- fixed income securities trading
Physical gold deposited in Liechtenstein
Option for physical delivery
Ideal strategy for DEFLATIONARY SHOCKS
PROTECTION
LEVERAGE
LIQUIDITY

20. Why investing into gold & silver over ETI-s?
Guaranteed physical gold ownership
(option for physical delivery)
No storage and insurance problems
Easy to transfer to “next generation”
Daily liquid, daily NAV
Anonymous ownership
Tax optimization effect
Easy to ENTER, easy to EXIT

21. WHO owns physical GOLD ….
… will always have MONEY

22. “Gold is the money of kings”
“Silver is the money of gentleman”
“Poor man’s gold”
“Barter is the money of peasants”
“Debt is the money of slaves”

23. Value of gold in the end of the crisis
Haus/apartment in GER/AUT
5oz = 150g
(Like in Germany in 1923)
In Switzerland 10oz?
Haus/apartment in USA
2oz = 62g
(Forecast by Chris Laird)
Holiday house in Spain 1oz = 31g
(historically 1oz = equivalent of persons annual salary)
Historically 1oz = equivalent of persons monthly salary
1 Kg of gold - a mid-size company or a hotel
(Like in Germany in 1923)

25. How to Invest?
FIND OUT MORE
www.inflationproofinvestor.com